CBO says Medicaid bill will cut the deficit

Senate Majority Leader Harry Reid (D-Nev.) said Tuesday night in a statement that the Congressional Budget Office would save money over the next 10 years and Republicans shouldn't have any reason to oppose it.

"Our plan to keep teachers in the classroom, police officers on the beat and firefighters on call is not only fully paid-for, but it also saves taxpayers money," Reid said in a statement.

Democrats will need one Republican to get them the 60 votes needed to end a filibuster.

The bill would provide $16 billion in Medicaid funding to states and $10 billion for teachers and first responders.

The measure is paid for by closing corporate tax loopholes that allow U.S.-based multinational companies to use foreign tax credits to reduce their U.S. taxes. The measure also rescinds previously appropriated money and cuts future food stamp benefits.

"This amendment meets every test Republicans claim to be concerned about. They have no more excuses, and tomorrow, they will have a choice: lay off teachers weeks before the new school year starts and fire the first responders who keep us safe, or help these workers keep their jobs and help our economy recover."

A vote scheduled for Monday was postponed until Wednesday after a CBO analysis showed the measure would add $5 billion to the deficit over the next 10 years.

Senate Minority Leader Mitch McConnell (R-Ky.) has called the bill a payoff to public employee unions.

"Our friends on the other side are now in the business of paying for states to hire more workers even if they can't afford it on their own," McConnell said Monday. "It creates a permanent need for future state bailouts, at a time when we can least afford it."